Finnair Expecting Negative Result

2nd Apr 2003

Finnair launched a 160Êmillion euro cost-cutting programme for 2003-2004Êa week ago, the goal of which is to achieve permanent changes in cost and operating structures. The reasons are the structural and permanent decrease in price levels as well as a significant drop in demand.
A 60Êmillion euro cut is targeted at personnel expenses which represents a 1200Êreduction in manpower in the Group. Finnair began negotiations with personnel groups in accordance with the Act on Co-operation within Undertakings on Monday. Short-term savings will be sought with maximum six-week lay-offs. The aim is to implement the lay-offs as quickly and widely as possible without significantly cutting the level of operations. The lay-offs will begin earliest in May.
The total effect of the cost cuts on the result will be felt starting 2005.
The Finnair Oyj operational result for the current financial year is expected to be negative.